Can Anyone Explain Internal Check Over Fixed Assets?

Fixed assets are purchases under proper authority. The owner or manger has the power to buy fixed assets. The voucher must be signed by owner or manger to show that purchase is legal. The record of the fixed asserts can be prepared by accounting staff. The journal entry and posting into the ledger account in necessary. The separate register of fixed assets should be maintained by management.

There must be an authority with one person to buy sell or exchange the fixed assets. The transaction must be completed by many persons for recording, possession, valuation and disposal. The register of fixed assets can be maintained for showing details of purchase. The name of seller, date and amount of asset and expected life of asset may be stated in the fixed assets register.

The transfer of assets is possible to branches or new sites. There should be proper recoding for movement of fixed assets. Such assets must be inspected personally at the end of every year. The repair of fixed assets is possibly every year. The repair expenses are considered as revenue. The repair register may be maintained separately. The repair vouchers must be approved by responsible officer.